US firm sparks bidding war for Australia’s Fairfax

SYDNEY: American investment firm Hellman & Friedman has kicked off a bidding war for Australia’s Fairfax Media by making a multi-billion-dollar offer to rival private equity company TPG Capital’s proposal, the publishing giant said Thursday.

Hellman & Friedman — former owners of US multimedia company Getty Images and German publisher Axel Springer — made an offer to acquire Fairfax at Aus$1.225-Aus$1.250 (91-93 US cents) a share late Wednesday, the Australian firm said.

The offer is higher than TPG’s revised bid of Aus$1.20 made on Monday, and values the publisher at Aus$2.82-Aus$2.87 billion.

Both bids are for the entire firm, which includes mastheads The Sydney Morning Herald, The Age and The Australian Financial Review, the lucrative property advertising Domain Group and its events and digital business units.

“We have carefully considered the indicative proposals and believe it is in the best interests of shareholders to grant both parties due diligence to explore whether a potential whole of company proposal is available,” Fairfax chairman Nick Falloon said in a statement.

The offers are subject to due diligence, shareholder and regulatory approvals in Australia and New Zealand.
Fairfax shares were 6.47 percent higher at Aus$1.24 at mid-day trade.

Like its global peers, Fairfax has struggled with slumping revenues and in February said it was looking to spin off Domain as a separate entity while retaining up to 70 percent of its shares.